TSMC stock hits record high; Here’s why

For comparison, the previous framework capped exposure to any one company at 10% of a funds net asset value. The change is notable as investors looking to capitalize on TSM growth and the regulatory tailwind may now consider ETFs with significantly more exposure to the stock.

For example, funds such as SP Funds S&P World ex-US ETF (SPWO) and Janus Henderson Global Artificial Intelligence ETF (JHAI) already allocate at least 10% of their portfolios to TSM shares.

TSMC stock breaks records

The newly announced policy shifts come at a time of strong momentum not just for TSMC but the broader semiconductor sector, too.

Notably, the Taiwanese chipmaker recently reported a 58% year-on-year surge in first-quarter profit, surpassing expectations as demand for artificial intelligence (AI) infrastructure continues to accelerate.

Net income for the three months ending in March rose to $572.48 billion, marking the fourth consecutive quarter of record-breaking earnings. Together with AI, high-speed computing now accounts for 61% of TSMCs total revenue, underscoring how important its role in the industry has become.

Indeed, as the most valuable tech company in Asia, TSMC remains central to the global semiconductor supply chain, with clients such as Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA).

For the second quarter of 2026, TSM expects revenue between $39 billion and $40 billion, broadly in line with consensus forecasts of $39.61 billion. The company guided gross margins of 65.5% to 67.5% and operating margins of 56.5% to 58.5%.